RumbleOn has announced its financial results for the three months ended March 31, 2021.
Within the financial details the company announced, “we expect our business combination with RideNow to close in late June or July of this year,” – Powersports Business reported the agreement between the two in March.
“During the past year we have continued to enhance our strategy and technology stack, paving the road for RumbleOn to participate in a tremendous share of powersport transactions, with improved unit economics. Our ‘buy direct from consumers’ strategy and our new B2B redistribution capabilities through DealerDirect means supply imbalances that would be headwinds for other business models, are tailwinds for RumbleOn,” said RumbleOn CEO Marshall Chesrown in the announcement. “With our pending business combination with RideNow, we are creating the only omnichannel solution in the powersports industry – offering an unparalleled customer experience for outdoor enthusiasts across the country. RideNow’s significant physical retail platform provides another piece of a ‘bricks and clicks’ strategy for RumbleOn, enabling us to reach consumers wherever and most important however they want to shop, whether online, offline, or both.”
Fiscal Q1 2021 financial highlights from the announcement are below:
– Total vehicle unit sales was 3,500, a 32.2% increase from 2,647 in Q4 2020
– Powersports unit sales was 1,006, up 17.0% from 860 units
– Automotive unit sales was 2,494, up 39.6% from 1,787 units
– Total revenue was $104.3 million, a 48.1% increase from $70.4 million in Q4 2020
– Powersports revenue was $10.9 million, up 27.7% from $8.5 million
– Automotive revenue was $84.1 million, up 52.1% from $55.3 million
– Transportation and vehicle logistics revenue was $9.3 million, up 41.0% from $6.6 million
– Total gross profit was $11.2 million, for a total gross margin of 10.7%, down 20 basis points from 10.9% in Q4 2020
– Gross profit and gross margin for our vehicle distribution business was $9.2 million or 9.7% versus 9.3% in Q4 2020. Gross profit per vehicle was $2,626, up from $2,241
– Powersports gross profit per powersport vehicle sold was $2,961
– Automotive gross profit per automotive vehicle sold was $2,490
– Sales, General and Administrative Expenses was $13.4 million, or 12.9% of revenue, down from 15.8% of revenue in Q4 2020
– Advertising and Marketing expense was $1.6 million as compared to $1.0 million
– Technology development expense was $0.4 million as compared to $0.4 million
– General and Administrative expense was $3.8 million as compared to $3.9 million
– Operating loss was $(2.8) million, an improvement from $(4.0) million in Q4 2020
– Net loss was $(4.5) million, an improvement from $(5.5) million in Q4 2020
– Positive Adjusted EBITDA of $0.02 million, an improvement from an Adjusted EBITDA loss of $(2.8) million in Q4 2020
– A description of our results of operations for the first quarter of 2021 compared to the first quarter of 2020 will be included in the Quarterly Report on Form 10-Q to be filed later today, May 17, 2021.
– Adjusted EBITDA is a non-GAAP financial measure. Reconciliations of non-GAAP financial measures used in this release are provided in the attached financial tables.
Second Quarter 2021 Outlook
– Total revenue range of $140.0 to $150.0 million, representing 66%-78% growth year-over-year
– Gross profit of $18.0 to $19.0 million, representing 113%-125% growth year-over-year
– Positive Adjusted EBITDA in the range of $1.2 million to $3.0 million
– We expect our business combination with RideNow to close in late June or July of this year. We are reiterating our prior guidance on the combined company. Assuming a combination as of January 1, 2021, we expect revenue in a range of $1.45 billion to $1.55 billion and adjusted EBITDA in a range of $110.0 million to $115.0 million.